Published on May 29th, 2020 | by Hammer0
Tan Chong Motors Hit With RM180 Million Nissan Tax Bill
News has just surfaced that Nissan is in big trouble as sales globally plunge and its partner, Renault is axing 15,000 jobs globally. To top this bad news, Nissan in Malaysia is also having serious financial issues.
Local Nissan brand guardian, Tan Chong Motor Holdings (TCMA) has just been hit with a hefty RM180.11 million tax bill. It seems that the Royal Malaysian Customs Department (RMCD) has not received this amount from Tan Chong Motor Holdings Bhd’s manufacturing unit Tan Chong Motor Assemblies Sdn Bhd (TCMA) for excise duties from Nov 1, 2016 to Oct 31, 2019.
TCMA assembles passenger and commercial vehicles from Nissan, Renault, Subaru, Mitsubishi, UD Trucks, Foto and Bison trucks. At press time there has been no statement as yet from Tan Chong management in Malaysia on this large tax bill.
Also, Nissan Motor Co in Yokohama, Japan has decided to close its pickup truck and van factory in Barcelona, resulting in the loss of about 3,000 jobs as part of a new worldwide restructuring plan.
The Nissan factory that produces Nissan commercial vehicles in Barcelona Spain has just been closed until further notice with 3,000 direct employees jobless immediately. This closure also effects the supply chain in the region and more jobs will be affected in coming weeks. It is estimated that indirect job losses could be as high as 20,000.
This comes as Nissan in Japan just last week announced the closure of another production facility in Indonesia. This means, the Nissan factory in Thailand now becomes the main manufacturing hub for the company in Southeast Asia.
In Europe, Nissan would continue vehicle production at its plant in Sunderland, United Kingdom. Nissan’s sales revenues dropped 14.6 per cent to 9.87 trillion yen, while the company did not release projections for the ongoing fiscal year due to uncertainty linked to the current Covid-19 pandemic.
Nissan said that along with its alliance partners Mitsubishi and Renault, it was planning to reduce investment and increase efficiency to decrease global production by 20 per cent until 2023. Nissan reported last Thursday a USD6.2 billion loss for the fiscal year ending in March. This is the first time the company has dropped into the red since 2009.
Automobile manufacturing in Spain makes up around 10 per cent of the country’s GDP. Spain happens to be Europe’s second-largest car producer after Germany. SEAT has a big production facility.
This factory closure and also the factory closure in Indonesia is costing the Yokohama based car manufacturer a hefty USD1.1 Billion.